The dependency ratio and optimum population growth

This paper examines the effects of introducing a variable dependency ratio in Dasgupta's (1969) model. We consider a case in which the probability of dying as well as the rate of participation in the labor force change with age. It is shown that the inclusion of those realistic demographic features slows down the optimal rate of population growth and increases the rate of consumption. In spite of the reduction in the rate of population growth, this rate can still be positive. The sensitivity of the solutions to changes in the demographic parameters of the model is examined.